Monday, April 16, 2007

MDII Chart

A reason to keep SVB (squeeze/volume/breakout) stocks on watch as long as you can. MDII had a couple of breakouts on volume. Then volume slacked off while the price based along the Muddy Zone through March. Came roaring back on 3/30 on 1.8 million shares and closed at 1.04. Ten trading days since then and it has more than doubled in price.

Actually, many people would have dropped this stock from their watch list when the volume went south; I know I did. But this is the power of having a "past runners" list in your head. A few weeks/months later you see it rolling on the HOD list and you just "KNOW" it's going to run again.

I don't think Muddy has mentioned it in awhile (though I believe Trapper has in chat), but the white candle filling the bands (see the first breakout) can be a very powerful buy signal, especially if it opens green the next day.

9 comments:

tristaina
said...

Yesterday, I bought AGEN nice and early, at 3.38. I saw on your chat that you all were on it too. Before I knew it, it was up by a dollar. I had to leave, so I set a break-even stop at 3.49, thinking that it might want to descent a good bit and then take off again, as I have seen often happens. When I came back a couple of hours later I was stopped out, and obviously I feel a bit foolish for not having taken profits earlier on. Well, I wasn't there but, if I had been there I am sure that I would have been scratching my head, trying to justify selling or holding. My question: how do you decide that it's the moment to terminate the trade and pocket the gains? In this case, what did you do and on the basis of what reasoning?

So then you are only trying to catch the move up. If it pulls back more than 4% and then breaks out again later on, as did RBY on Monday or INSW yesterday, you will try to get back in as it passes its hod?

"So then you are only trying to catch the move up. If it pulls back more than 4% and then breaks out again later on, as did RBY on Monday or INSW yesterday, you will try to get back in as it passes its hod?"

I will get in again if I have an opening and it is not too late in the day near the close.xxxxxxxxxxxxxxxxxxxxxxxx

"Also, I have noticed several times on the chat that you mention about "getting a buck". Is that to say that you use that as a sell signal in some cases?"

I say that only on higher priced ones usually over $15.When I enter these that is my goal,to take a dollar out of it.As with all priced stocks I almost always use a 3-4% trailing stop.

This blog exists so that Muddy doesn't have to repeatedly answer the same questions from new readers and chat room members.

Muddy outlines how he screens, selects, and plays stocks. You won't find daily posts on the market. We don't care if the markets are green or red, nor do we post general market commentary. As Loki said in the chat room, "No matter the shade, cash to be made".

Disclaimer

Content on this site is not appropriate for the purpose of making a decision to carry out a transaction or trade. Nor does it provide any form of advice (investment, tax, legal) amounting to investment advice. Under no circumstances should any person at this site make trading decisions based solely on the information discussed herein.

****DISCLAIMER****

Content on this site is not appropriate for the purpose of making a decision to carry out a transaction or trade. Nor does it provide any form of advice (investment, tax, legal) amounting to investment advice. Under no circumstances should any person at this site make trading decisions based solely on the information discussed herein.